Joe C Corporation has declared an annual dividend of $0.50 per share. For the year just ended,

Question:

Joe C Corporation has declared an annual dividend of $0.50 per share. For the year just ended, earnings were $8 per share.

a. What is Joe C’s payout ratio?

b. Suppose Joe C has seven million shares outstanding. Borrowing for the coming year is planned at $18 million. What are planned investment outlays assuming a residual dividend policy? What target capital structure is implicit in these calculations?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals Of Corporate Finance

ISBN: 9780072553079

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

See More Books

Question Posted: Oct 04, 2023 02:21 PM

See More Questions

Hazzizzi Ltd Trial balance as at March 31, 2023 Trade receivables 22,800,000 Trade payables 6,100,000 Provision for bad debt 7,600,000 Bank 2,100,000 Cash in hand 928,000 Petty cash 203,000 Interest...
1. If you own 15 000 shares of BHP Billiton Ltd (BHP) and it pays a dividend of $0.27 per share, what is the total dividend you will receive? 2. Telford Corporation has a current share price of $20...
Rutland Corporation has declared an annual dividend of $0.50 per share. For the year just ended, earnings were $8 per share. a. What is Rutlands payout ratio? b. Suppose Rutland has seven million...
Which statement about cylindrical coordinates is correct? (a) If = 0, then P lies on the z-axis. (b) If = 0, then P lies in the xz-plane.
Why have re-engineering efforts been made to integrate AIS and MIS?
Which one(s) of the methodologies described in this chapter do you feel would be the most difficult to manage? Explain. Which do you think is the most successful? Why?
What are the advantages of using the Internet to conduct preliminary job interviews? What problems is a company that uses computer-aided interviewing likely to encounter?
Refer to the situation in Exercise 86. Suppose you choose someone randomly and discover that the person is a supporter of expanded tax credits. Use Bayes theorem to revise the probability that the...
Provide References In September of 2015, the EPA issued Volkswagen ( OTCPK:VLKAY ) a notice of violation of the Clean Air Act of 1963. The EPA accused the Volkswagen Group of intentionally...
Red Zeppelin Corporation follows a strict residual dividend policy. Its debt-equity ratio is 3. a. If earnings for the year are $140,000, what is the maximum amount of capital spending possible with...
Soprano, Inc., a litter recycling company, uses a residual dividend policy. A debt-equity ratio of .80 is considered optimal. Earnings for the period just ended were $900, and a dividend of $420 was...
In an RLC circuit such as that of Fig. 3I-7 assume that R = 5.00, L = 60.0 mH, f d = 60.0 Hz, and m = 30.0 V. For what values of the capacitance would the average rate at which energy is dissipated...
A $10 \%$ rich mixture of heptane $\left(\mathrm{C}_{7} \mathrm{H}_{16} ight)$ and air is trapped in the cylinder of an engine at a pressure of $1 \mathrm{bar}$ and temperature of \(400...
A turbocharged, intercooled compression ignition engine is operated on octane $\left(\mathrm{C}_{8} \mathrm{H}_{18} ight)$ and achieves constant pressure combustion. The volumetric compression...
Revisit the guidelines in this chapter for negotiating a job offer. Then, with the two classmates you worked with for Exercise 16, practice negotiating. Divide roles: the hiring manager, candidate,...
An engine runs on a rich mixture of methyl and ethyl alcohol and air. At a pressure of 1 bar and $10^{\circ} \mathrm{C}$ the fuel is completely vapourised. Calculate the air-fuel ratio by volume...
A gas engine with a volumetric compression ratio of $10: 1$ is run on a weak mixture of methane $\left(\mathrm{CH}_{4} ight)$ and air, with $\phi=0.9$. If the initial temperature and pressure...
The following section is taken from Mareskas balance sheet at December 31, 2017. Current liabilities Interest payable............ $ 40,000 Long-term liabilities Bonds payable (8%, due January 1,...
Suppose that a business sells 6-month subscriptions to its monthly magazine. On January 1, the company receives a total of $600 for 10 subscriptions. To record this transaction, the company debits...
What are the differences between cash flows used in capital budgeting calculations and past accounting earnings?
Suppose that FRA Corporation already has divisions in both Dallas and Houston. FRA is now considering setting up a third division in Austin. This expansion will require that one senior manager from...
MusicHeaven, Inc., is a producer of MP3 players, which currently have either 20 gigabytes or 30 gigabytes of storage. Now the company is considering launching a new production line making miniMP3...
Iron ore has the following screen analysis after crushing to minus 50.8 mm. Passing Retained Wt.% 50.8 mm 38.1 mm 41.5 38.1 mm 25.4 mm 25.2 25.4 mm 19.0 mm 15.1 19.0 mm 12.7 mm 13.1 12.7 mm 9.5 mm...
Which company has the higher receivables turnover ratio? Company A Company B Average Net Accounts Receivable $2,000 $5,000 Average Inventory $4,000 $20,000 Net Sales $40,000 $100,000 Multiple choice...
Scenario 13:Accountant 13 is a new staff accountant. She says I just passed the CPA exam. The clientwants to give me and my family the companies' luxury box to celebrate the all star baseballgame and...

Joe C Corporation has declared an annual dividend of $0.50 per share. For the year just ended,

Question:

Step by Step Answer:

a To calculate Joe C Corporations payout ratio you can use the following formula Payout Ratio Divide...View the full answer

Fundamentals Of Corporate Finance

Students also viewed these Business questions